70.2K

Verified Solution

Link Copied!

9.

The following is the ending balances of accounts at December 31, 2016, for the Weismuller Publishing Company.

Account Title	Debits			Credits
Cash		77,000
Accounts receivable		172,000
Inventories		291,000
Prepaid expenses		160,000
Machinery and equipment		332,000
Accumulated depreciationequipment					116,000
Investments		152,000
Accounts payable					66,000
Interest payable					26,000
Deferred revenue					86,000
Taxes payable					36,000
Notes payable					230,000
Allowance for uncollectible accounts					22,000
Common stock					406,000
Retained earnings					196,000
Totals		1,184,000			1,184,000
Additional information: 1. Prepaid expenses include $132,000 paid on December 31, 2016, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility. 2. Investments include $36,000 in Treasury bills purchased on November 30, 2016. The bills mature on January 30, 2017. The remaining $116,000 includes investments in marketable equity securities that the company intends to sell in the next year. 3. Deferred revenue represents customer prepayments for magazine subscriptions. Subscriptions are for periods of one year or less. 4. The notes payable account consists of the following: a. a $46,000 note due in six months. b. a $106,000 note due in six years. c. a $78,000 note due in three annual installments of $26,000 each, with the next installment due August 31, 2017. 5. The common stock account represents 406,000 shares of no par value common stock issued and outstanding. The corporation has 700,000 shares authorized. Required: Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2016.(Amounts to be deducted should be indicated by a minus sign.)

Answer & Explanation Solved by verified expert

See Answer